Trump says he is considering a reduction in payroll taxes as he pushes back the recession claims



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President Donald Trump said he was willing to risk a "two-month recession" to silence China, saying Tuesday that only "stupid people" did not understand his trade and tariff war policy.

Angered, Trump warned reporters that if he had not challenged China, the theft of intellectual property would hurt even more companies like Apple than its tariffs.

"Someone had to face China," he explained. "China has been seizing this country for 25 years, but longer than that. And it is high time that it is good for our country or bad for our country in the short term. In the long run, it is imperative that someone do it because our country can not continue to pay $ 500 billion to China, because stupid people are running it.

He said, "Whether good or bad in the short term is irrelevant. We must solve the problem with China.

"Whether good or bad, the short term is irrelevant. We have to solve the problem with China because it takes more than $ 500 billion a year. And that does not include the theft of intellectual property and other things. And also, national security, so I make it good or bad for your statement about, "Oh, are we going to fall into a recession for two months?" "he told a reporter asking him to talk about a possible recession.

Trump said: "The fact is that someone had to face China. My life would be much easier if I did not take China. But I like to do it because I have to do it. And we get valuable help. China has had the worst year in 27 years and many people have said the worst year for 54 years, agree?

President Donald Trump says he's ready to risk a

President Donald Trump says he is willing to risk a "two-month recession" to silence China, declaring Tuesday that only the "stupid" do not understand his trade war policy and his tariffs

Smoking, the president insisted to the journalists: "We win big. I took it.

And I'm happy to do it. Because it had to be done. And smart people say thank you very much. And idiots have no idea. And then you have the politicians, and they go with the wind. But they all know.

He defended his tariffs on China stating: "My trade agreements are no problem. It's something that had to be done.

Trump also confirmed that he was considering a reduction in payroll taxes, recognizing that it is "something we think about and that many people would like" that he is pursuing to stimulate the economy.

Sitting next to Romanian President Klaus Iohannis, the president denied the fact that the US economy was in distress.

"I think the word recession is an inappropriate word," he said. "Some people and the media are trying to grow because they would like to see a recession."

He urged the Federal Reserve to reduce rates again and said at the very least "that they should do nothing," he said against the financial institution.

Trump said that it was not necessary to reduce the amount of money in circulation, a monetary policy known as quantitative tightening.

"The food is very important psychologically," he said at the Oval Office meeting, where he answered half an hour of questions from the assembled journalists.

The President cited the example of the EU and Germany: "You must be proactive. So we really need a reduced rate because if you look at what is happening in the European Union, for example, it reduces.

"If you look at Germany, what she does and what she pays for, she actually does something of the opposite, no one has ever seen her. before, we must at least follow a step, he says. "So we are looking for a rate reduction.

Trump's remarks were broadcast on television while Wall Street slowed down for the day.

It closed down 173.35 points to 25 962.44 points, after being raised Monday, at the last market fluctuation.

Trump accused Democrats on Tuesday of leading a strategy to drive the country into recession, amplifying the claims of its allies that the economy is stronger under his leadership.

In a morning tweet that erupted as White House officials discussed how to stimulate the economy while Trump refused to deny the recession, he retweeted Mike Pence, his campaign director and his three allies. media, Geraldo Riviera and Jesse Watters from Fox News and Maria Bartiromo from the Fox Business Network.

Trump was credited with "superhuman energy" and claimed that Democrats were trying to drive the country into recession to defeat it by 2020.

And GOP President Ronna McDaniel said in tweets that optimism in the manufacturing sector is on the rise and unemployment is falling.

Trump seconded his campaign manager, Brad Parscale, who proclaimed in a message: "The liberal media are so upset by the president [Donald Trump] that they are now encouraging the economic recovery – sorry to disappoint the Democrats, but the economy has never been so strong! "

And the tweetstorm praised Michigan's economy in Michigan by Vice President Mike Pence, who was heading there Tuesday, the day it was revealed that US Steel was developing hundreds of blast furnaces and closed blast furnaces.

Pride of praise: Trump has turned to Twitter to confirm his claims that the warnings of a recession are motivated by the desire to dismiss him.

Pride of praise: Trump has turned to Twitter to confirm his claims that the warnings of a recession are motivated by the desire to dismiss him.

U.S. Steel – a company whose rebirth is a key part of Trump's story – has announced the dismissal of 200 workers. It will also idle two blast furnaces for at least six months in the Great Lakes and Gary Works mills, due to lower steel prices and weak demand.

The layoffs were termed temporary in the deposits, but the company admitted they could last more than six months, which is another indicator of the slowdown in the US economy.

Michigan is critical to Trump's re-election prospects after the shock victory that played a key role in placing him in the White House.

In addition, JP Morgan Chase, a leading lender, said Trump's China tariffs would cost US households $ 1,000.

Despite Trump's bravado on social media and previous public comment bulls, White House spokesman Hogan Gidley confirmed that discussions were underway on some form of stimulation.

He denied only one specific report that the measure would bring about a reduction in the payroll and told Fox News: "This is not envisaged at the moment, but it examines all possible options to try to make people some of the hard-earned money they've earned. " I did it.

According to a Washington Post article quoted in the White House, the government planned to temporarily reduce the tax by 6.2% in order to avoid an economic slowdown.

The suggestion was modeled on a two percent cut made by Obama during his first term, which expired in 2013 with the resumption of employment growth.

On Monday night, a White House official told DailyMail.com that a payroll tax was not being considered, although the person left the door open for future tax cuts to revive the economy.

"As Larry Kudlow said yesterday, further tax cuts for the American people are certainly possible, but the reduction in payroll taxes is not envisaged at the moment," he said. said the manager.

Kudlow had said Sunday in Fox News that the president 's promise in October 2018 to continue tax cuts for the middle class was still topical.

He denied that the country is on the brink of a recession, however, after inquiring of the alternate host, Dana Perino, about the emergency measures to be taken to counteract a recession.

"First of all, I do not see a recession at all. Second, Trump's pro-growth program, which I think has been successful in lowering tax rates, canceling regulations, opening up energy, reforming trade, we're going to stop there. " he declared. "We believe that it is the heart of free enterprise. We want an incentive-based supply economy, offering opportunities at all levels.

"It's just about as good as that and I notice that at the end of the week, many Wall Street businesses have corrected their economic growth forecasts." I think we are in pretty good shape and I just want to say that you know, we should not be afraid of optimism. & # 39;

Asked about a call that Trump had last Wednesday with Jamie Dimon of JP Morgan and the CEOs of two other leading lenders, he suggested that the conversation focused on the president's tariffs in China.

The lender said Tuesday that the next round of tariffs, which had been postponed until December 15, would likely bring the cost per household to $ 1,000 this year.

Trump and his aides have now spent days publicly denying that a recession was brewing and that the United States needed to take action. The president said on Sunday that he was "ready" to fight one, though a financial slowdown was taking the country by surprise.

"I do not see a recession," he said. "China is doing very badly. They had the worst year in 27 years because of what I did. And they want to come to the negotiating table.

Trump insisted that US consumers "were not paying for the tariffs" that he had on $ 250 billion of Chinese products, and said he was reviewing a plan to put tariffs on laptops and mobile phones in December to protect consumers and US businesses.

He accused his political opponents of attempting to destroy the US economy to jeopardize his chances of re-election on Monday as his government was trying to quell the fires by claiming that it was recession could be imminent.

Trump said Monday that the economy is doing well despite the "very selfish" policy of Democrats on mission to oust him from the White House.

"Our economy is very strong, despite the dreadful lack of vision of Jay Powell and the Fed, but the Democrats are trying to" want "the economy to be bad for the purposes of the 2020 election. Very selfish! Our dollar is so much that it hurts other parts of the world, "he tweeted.

On the spot: Donald Trump and his associates have spent days denying the threat of a recession

On the spot: Donald Trump and his associates have spent days denying the threat of a recession

Trump said the economy is doing well despite the "very selfish" democrats, whose mission is to oust him from the White House.

Trump said the economy is doing well despite the "very selfish" democrats, whose mission is to oust him from the White House.

He added: "The rate of the Fed, over a relatively short period, should be reduced by at least 100 basis points, with perhaps also some quantitative easing. If this happens, our economy would be even better and the world economy would grow stronger and faster, which would be good for everyone! & # 39;

Last week, the president accused the media of "doing everything in their power to plant the economy because they thought it would be bad for me and my reelection".

He blamed a wide range of third parties, including Joe Biden and Hong Kong protesters, for sabotaging a trade deal with Beijing that would help the economies of both countries.

Three quarters of economists predict a US recession by 2021 – but many people claim that it will be after the presidential election

A number of US economists appear sufficiently concerned about the risks inherent in some of President Donald Trump's economic policies to expect a recession in the United States by the end of 2021.

In total, 74% of economists surveyed by the National Association for Business Economics, in a report released Monday, said they believe that a slowdown in the economy would lead to a recession by 2021.

However, there is good news in the survey for the president, with the number of people who see a recession in 2020 rise from 42% to 38%, while the number predicting a recession in 2021 is 34% . This represents a 25% increase over a survey conducted in February.

Only 2% of respondents expect the recession to begin this year, compared to 10% in February. A slightly higher number than previously – 14% – indicates that it will be later than in 2021.

Trump, however, dismissed worries over a recession, offering an upbeat outlook on the economy after last week's sharp downturn in financial markets and saying on Sunday: "I do not think we are going through a recession." A strong economy is key to the Republican president's prospects for reelection for 2020.

Economists have already expressed concern that Trump's tariffs and larger budget deficits could eventually dampen the economy.

Answer: What business economists surveyed by the National Association for Business Economics say about a slowdown

Answer: What business economists surveyed by the National Association for Business Economics say about a slowdown

The Trump administration has imposed tariffs on the goods of many key trading partners in the United States, from China to Europe, Mexico and Canada.

Officials argue that tariffs, which are taxes on imports, will help the administration to obtain more favorable terms of trade. But US trading partners simply retaliated with their own tariffs.

Trade between the United States and China, the world's two largest economies, plummeted. Trump decided last Wednesday to postpone tariffs on about 15 percent of China's $ 300 billion of additional imports by December 15, granting a stay of the planned move that would have extended rights to almost anything United States buy to China.

The financial markets last week announced the possibility of a recession in the United States, adding to concerns over ongoing trade tensions and the announcement by Britain and Germany of the contraction of their economies.

Economists surveyed by NABE were skeptical about the chances of success of the latest round of trade talks between the United States and China. Only 5% predicted a global trade agreement, 64% suggested that a superficial agreement was possible and nearly 25% did not expect an agreement between the two countries.

The 226 respondents, who work primarily for corporations and professional associations, were interviewed between July 14 and August 1.

That was before the announcement by the White House of 10% tariff on the additional $ 300 billion of Chinese imports, the Chinese currency fell below the level of seven yuan to the dollar for the first time in eleven years and the Trump administration has officially called China a currency manipulator.

Overall, recent responses from business economists have been a rebuke to the Trump administration 's overall approach to the economy.

Yet, for the moment, most economic signs seem solid. Employers are adding jobs at a steady pace, the unemployment rate remains close to its lowest level in 50 years and consumers are optimistic. US retail sales figures released last Thursday showed that they jumped in July from the strongest of the past four years.

The survey showed a sharp drop in the percentage of economists who found the tax cuts of $ 1.5 trillion over the next decade "too stimulating" and likely to produce budget deficits the largest, which should be reduced from 71% to 71% in August 2018.

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